Department of Defense Lean Six Sigma Executive level overview There must be a better way! • Agenda: • Lean Six Sigma Overview – The foundation of LSS – Lean / Six Sigma / LSS – DMAIC Terminal Learning Objective • Task: Apply DMAIC to a Simple Work Process • Condition: You are training to become an ACE with access to ICAM course handouts, readings, and spreadsheet tools and awareness of Operational Environment (OE)/Contemporary Operational Environment (COE) variables and actors • Standard: with at least 80% accuracy: – – – – Describe the foundation of Lean and Six Sigma Define the underlying theory of Six Sigma Describe the principles of Lean Six Sigma Explain the concepts of DMAIC Lean Six Sigma overview • Why Lean Six Sigma • Principles and Tools • Deputy Chief of Staff Army G-1 www.armyg1.army.mil/leansixsigma/whatislss.asp • Performance Excellence… A Lean Six Sigma WorldClass Methodology • Where to Start…Voice of the Customer Foundation to Lean 6 Sigma • Definitions of Insanity: – Doing the same thing over and over and expecting a different outcome! • AND – Using the same logic to get out of the trouble that got you there in the first place! Albert Einstein Foundation to Lean 6 Sigma • "To measure is to know.“ • "If you can not measure it, you can not improve it.“ • "…I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind ” Lord Kelvin Right Training. Right Attitude • Lean Six Sigma is not rocket science…you can do this • Lean Six Sigma is not “easy”…it requires dedication and effort • Lean Six Sigma is not the next program…it is a way of thinking…an approach to every task performed, that asks the question…“does this add value?” What is Lean? • Identifying improvement opportunities in processes • Utilizes scientific problem solving methods • Focus on reducing non-value added steps in a process • Analyzing and improving process flows • Reducing complexity • Solving many smaller problems Value-Added Activities The Lean Ladder Eight Types of Waste • Wastes-Those Elements of a process that Do Not Increase the Value of a Product or Service as perceived by the Customer, but Increases Cost and Cycle times. – IDENTIFY AND ELIMINATE THESE WASTES: • Types of Waste: – – – – – – – – T Transportation I Inventory (Excess) M Motion W Waiting O Over-producing O Over-processing D Defects U Under utilization of employees Learning Check • Why should Lean be considered? • What are Value added Activities? • What are some of the types of waste? What Is Sigma σ? What is Six Sigma? • • • • • A Philosophy for Quality Improvement Uses a structured approach to problem solving Utilizes Scientific Problem Solving Methods A Statistical Measure of Variability When Achieved, Reduces Defects in an Operation or Process to 3.4 Defects per Million Opportunities DPMO • A Way to Achieve Significant Savings • Breakthrough Improvements in Performance • 6 σ is about making money Why Use Sigma As a Metric? Six Sigma Defined Six Sigma: • Is a systematic methodology utilizing effective data analysis tools and techniques to improve performance by eliminating / preventing defects and inefficiencies’ in processes, to meet and exceed customer needs. • Derives from a 99.99966% error free quality level OR less than 3.4 errors per million opportunities Learning Check • • • • What is Sigma σ? What is Six Sigma? Why use Sigma as a metric? Define DPMO Integrating Lean and Six Sigma • Natural evolution • Applies the right tools to a project • Leverages tools and methodologies to maximize process improvements • Reducing waste and variability go hand in hand in process improvement What Lean Six Sigma is not • A complicated way to manage your organization • Anew way for the “Quality Department” to audit reports and performance • Something that requires you to discard what you learned with TQM, CQI, etc. • A new way to spend money without clear benefit to the organization • Something that requires a complicated computer system • A way to eliminate jobs History of Lean, Six Sigma • Frederick W. Taylor: 1880s-early 1900s, systematic study of workers’ use of time and motion • Henry Ford: continuous flow production, waste elimination • TWI: (Training Within Industry), 1940-1945 • W.E. Deming and Joseph Juran: took quality control to Japan in 1953 • Kiichiro Toyoda and Taiichi Ohno: low inventories, flexibility • U.S. supermarkets: pull systems • Shigeo Shingo: mistake proofing, reduced set up times • Toyota Production System NIKE • MIT and James Womack: bring Lean back to U.S. • NBC White Paper: If Japan can, Why can’t we?, 1980s • Eli Goldratt: published book The Goal”, early 1980’s • Motorola: global deployment launched Six Sigma 1987, opportunity for error Why Use Lean Six Sigma • LSS is the CPI industry standard – Increases throughput – Shortens cycle times – Reduces defects – Lowers cost Versatility When to Use the LSS Process • When to Use: – – – – – Driven by the Business Strategy Problems that “have been around as long as we can remember.” Solution is not known or is not obvious You are willing to commit people to identify and resolve the issue You want a more definitive solution than traditional methods can provide – You want to encourage the upward flow of ideas and build team spirit – You want group ownership of a course of action • When NOT to Use: – You don’t have a specific challenge or clear issue to solve – You already have a solution and course of action – You don’t have a consistent process to improve Lean Six Sigma Principles • Identify value in the eyes of the Customer – Learn to see your processes from the perspective of your customer • Identify the value stream and eliminate waste/variation • Make value flow at the pull of the customer • Involve, align, and empower employees – Develop solutions using the people who are currently working in the process • Continuously improve knowledge in pursuit of perfection Continuous Improvement • A framework for constantly improving organizational performance • Provides steady, incremental improvement in everything we do to meet/exceed changing expectations: – – – – Better quality Faster turnaround Lower costs More responsive service • A relentless, never-ending process • Requires that we all change the way we think talk work think, talk, work, and act A Program of Process Improvement Continuous Process Improvement (CPI) is a deliberate change in Process Performance The Importance of Reducing Variation • To increase a process Sigma Level, you have to decrease the variation • Less variation provides: – Greater predictability in the process – Less waste and rework, which lowers cost – Products and services that perform better and last longer – Happier customers Foundation to Six Sigma Y = f(X) Y is: Xs are: Output Inputs Dependent Independent Observed Controlled Effect Causes Result Reason Identify and control the X’s Process output is A function of Key process and input factors that cause variation in the output • Y = f(X1,X2,…) • In Improvement – Identify the key X’s to reduce variation in the Y • In Design – Carefully set specifications on the X’s so that we get the desired Y • In Process Management – Monitor and control the X’s to assure we will get the desired Y Why Aim as High as 6 Sigma? The Look of 6σ Performance 3σ - 99% not defective 6σ – 99.99966% not defective Lost articles of mail per hour 20,000 7 Incorrect surgeries per wk 5,000 1.7 Wrong prescriptions each yr 200,000 68 Hours without electricity 7 hr per month 1 hr per 34 years Culture of Performance Improvement Learning Check • Why combine Lean manufacturing with Six Sigma? • Why aim for 6σ? • How do you improve a sigma level? Overview of DMAIC The DMAIC Process • Provides a structured approach for addressing problems • Provides a common language • Minimizes the risk of jumping to the wrong conclusion • Provides a checklist to prevent skipping steps • Each step has goals, tools and outputs • Tollgate reviews occur at each phase Define • Goal – Define project purpose and scope and obtain background information on the process and its customers • Outputs – Cleat statement of the intended problem and how to measure it – High-level process map – Key quality characteristics • Approach – Develop project charter – Map the process – Understand the voice of the customer Measure • Goal – Focus the improvement effort by gathering information about the current situation • Outputs – Baseline performance data – Common understanding of how the process currently operates – More focused problem statement • Approach – Collect data and check special causes – Create detailed process maps Analyze • Goal – Identify root cause and confirm with data • Outputs – A tested and confirmed theory – Understanding of the effects of the inputs on the output • Approach – Explore and organize potential causes – Use statistical methods to quantify a cause-and-effect relationship Improve • Goal – Develop, try out and implement solutions • Outputs – Planned and tested actions that eliminate or reduce the impact of root causes – Comparison of “before” and “after” data to show effects • Approach – Create possible solutions – Select solutions and develop plans – Implement plans and measure results Control • Goal – Maintain the gains by standardizing work methods or processes • Outputs – Documentation of new methods – Train others in the new process – System for monitoring the new process • Approach – – – – Develop and document standard practices Train teams and monitor performance Create process for updating procedures Summarize and communicate learning Learning Check • What does DMAIC stand for? • Describe the DMAIC process? Lean Six Sigma Simulation • Score for your team • First round will use standard MRP batching process as defined by the instructor • Second round implement the changes suggested by the class using DMAIC • Each round will last 15 minutes • The team with the most point WINS!! Questions? The Army OBT has more information on LSS and training opportunities. www.armyg1.army.mil/leansixsigma/whatislss.asp Do you have any questions? Thank you for joining our discussion today.